Commercial Real Estate Finance

Posts Tagged ‘buyers’

An analysis of the housing crisis by Karl Case:

For the last few years, we have shed many tears
Living through a recession.
The economy’s broke and it’s not a joke,
When we talk of another depression.
Fifteen million without a job,
Foreclosures and banks that fail,
401K’s became 201K’s,
And everything’s up for sale.

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Ryan joined Sentry in 2009 bringing a wealth of financial experience to the organization with a special focus in Hospitality Real Estate. As the holding company’s CIO and Principal, Ryan oversees all capital, investment and new business development transactions. In addition, he controls relationships with investment partners, lending institutions, and oversees Finance and Operations for Sentry Centers, the new urban conference center platform of the company. Ryan comes directly to Sentry from Gramercy Capital where he served as a Vice President responsible for the workout and restructuring of Gramercy’s hospitality related assets. Prior to this, he worked for Lehman Brothers within their commercial real estate group. Ryan is an active member of the Urban Land Institute (ULI) and a graduate of Villanova University.

Q: As a company, tell me about the niche you have carved out for yourself and how you feel you are different from the competition. Why do you find this product type more appealing than alternative real estate asset classes?

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Landlords are scrambling to find tenants and buyers at a reasonable price. Buyers are scrambling to pool funds together to buy distressed assets. Over the last 6 months or so, we here at Llenrock have been approached by a variety of would be investors seeking equity to start, in some form or fashion, a distressed asset fund.  The simple logic is that with asset values plummeting, there will be opportunity.  There HAS to be opportunity.  Its the basic “sell high, buy low” mentailty of Wall Street. We hear pitches like, “I have an opportunity to buy a Class A building in a good submarket for only $100 per square foot!  It’s a steal!  It’s a no-brainer that its a good buy!”

Well, it may be a no-brainer…not because its a good buy, but because the people aren’t using their brains to properly assess the market. Read the rest of this entry »

As if landlords didn’t already have enough to worry about, dealing with delinquent rent payments, having to offer concessions left and right to increase occupancy, and wondering what they will do when their current loan balloons, they now may have to increase their capital expenditure budgets and rework their ARGUS models too. Why you ask?  Well if new legislation in Philadelphia gets passed this fall, and then catches on in other major cities with older infrastructure, landlords may have to pay for exterior building maintenance. Read the rest of this entry »

Real Questions…

…. and Un-intended Consequences

Question 1:

If you are a buyer of real estate (and actually have capital), what sort of IRR are you looking for? 20%? 30%?

Question 2:

If you are an owner of real estate, why on earth would you sell into this market unless you absolutely had to?

In the last installment of Real Questions… we talked about how buyers of commercial real estate are waiting for the sellers of the world to blink.

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